Saudi property developer Jabal Omar Development Company plans to raise around $447.6 million through a rights issue, which would finance about 14 percent of its sole project in Makkah. “The issue premium will be set later,” it said in a statement, adding that its board had recommended the SR1.68 billion ($447.6 million) capital increase. The company has hired the world's largest Islamic lender Al-Rajhi Bank to provide “financial advise and arrange the necessary financing through diverse Shariah-compliant instruments” for its project in Makkah. Jabal Omar said in April that its previous financial adviser, Saudi investment bank Jadwa Investment, was unable to secure SR12.4 billion ($3.31 billion) to finance the project within agreed deadlines. Jabal Omar Development later said it would present its shareholders on June 10 with a proposal allowing the firm to issue Sukuk, or Islamic bonds. Earlier, Jabal Omar Development Company has invited greater Malaysian interest including Tabung Haji to participate in the 60-acre (24-ha) real estate project near the Grand Mosque (Masjidil Haram) in Makkah. International Trade and Industry Minister Datuk Mustapa Mohamed, who is on the final leg of his week-long trade and investment mission to three Arab countries, said the project involved SR18 billion. “Work has started. They are inviting Malaysian investors including Tabung Haji to rent part of the area that is under development.
